Microsoft India R&D has sealed a major office lease at Phoenix Centaurus in Gachibowli, Hyderabad.
The tech giant has taken 2.65 lakh sq ft across the third and fourth floors, with a five-year sub-lease agreement signed with managed office space operator Tablespace Technologies.
According to documents accessed by Propstack, the lease commenced in July 2025 at a monthly rent of ₹5.4 crore; translating to around ₹204 per sq ft.
The structure includes a base rent of ₹67 per sq ft, in addition to common area maintenance charges, operating and capital expenses, and management fees.
The deal carries an annual escalation of 4.8% and a security deposit of ₹42.15 crore. Microsoft has also paid ₹92.94 lakh towards stamp duty and registration.
Tablespace Technologies is the sub-lessor in this transaction. The firm itself leases the property from Phoenix Tech Zone, paying ₹67 per sq ft as base rent plus ₹16.28 per sq ft in CAM charges.
Hyderabad continues to be one of India’s most resilient office markets, with Knight Frank data showing nearly 10 million sq ft of gross leasing in FY24, driven largely by technology, financial services, and global capability centres (GCCs).
Analysts say Microsoft’s latest expansion reinforces occupiers’ confidence in Hyderabad’s infrastructure, talent pool, and cost competitiveness, ensuring rental stability even amid new supply.
Microsoft has been steadily increasing its footprint in India, with major facilities in Bengaluru, Hyderabad, Noida, and Pune.
In 2024, Tata Consultancy Services (TCS) leased 10.18 lakh sq ft in the Financial District’s Serilingampally Mandal at a monthly rent of ₹4.3 crore.
Similarly, in December 2024, Facebook renewed its 3.7 lakh sq ft Hyderabad office lease across two transactions, together valued at ₹2.8 crore a month.
